Energy Giant Climbs After Earnings, Acquisition

Chesapeake Energy is acquiring Vine Energy in a deal valued at around $2.2 billion

Deputy Editor
Aug 11, 2021 at 10:27 AM
facebook twitter linkedin


Chesapeake Energy Corp (NASDAQ:CHK) is in the spotlight today, after news that the company is acquiring sector peer Vine Energy (VEI) in a cash-and-stock deal valued at roughly $2.2 billion. Plus, Chesapeake Energy reported better-than-expected second-quarter earnings of $1.64 per share after the close yesterday, and raised its full-year production forecast. At last glance, CHK was up 2.2% at $56.71 -- earlier hitting a record high of $57.82.

Newly traded since exiting bankruptcy in early February of this year, today's highs have the stock surging past its mid-June peak of $56.99. Today's pop also has the security breaking past pressure at the $56 level, which it found after hitting a ceiling at the $55 mark for roughly a month. Now above a slew of short-term moving averages, the equity is up 12.2% in the last three months. 

In response, Capital One Securities upgraded the stock to "overweight" from "equal weight." Coming into today, three of the five analysts in coverage already carried a "buy" or better rating on Chesapeake Energy stock, with two a "hold." Meanwhile, the 12-month consensus price target of $68 is a 21.4% premium to current levels. 

 

 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1